Mindoro Resources reports positive drilling results from a further 13 holes at the Agata nickel laterite project in northern Mindanao, the Philippines, and now intends to fast-track the project.

For section 10250N the limonite horizon averages 1.10% nickel and 42.67% iron over an average thickness of 8.45 metres. For section 10300N, 50 metres to the north, the limonite horizon averages 0.95% nickel and 41.46% iron over an average thickness of 5.73 metres.

Mineralization grades and thicknesses meet company expectations and are in line with requirements for direct shipping grade material for ferro-nickel feedstock.

The company's objective at Agata is to define a NI 43-101 compliant resource adequate, initially, for three to five years of production at a rate of 500,000 to 700,000 wet metric tonnes per annum of direct shipping-grade material for the very high demand ferro-nickel markets of China, India and Korea.

Mindoro has a target production date of the first half of 2008, and will ramp up production to one million tonnes or more per year thereafter depending on market demand.

Mindoro considers the resultsform a sound basis for fast-tracking the project. The Environmental Compliance Certificate is well advanced and the recently hired mine manager is advancing mine design planning.